Investors are adjusting to the possibility that interest rates may not decrease as anticipated in 2024. This has resulted in some market panic. However, there’s room for optimism. Historically, April and December have proven to be the strongest months for the stock market.
This suggests the later parts of this month could witness a rebound. Furthermore, investors are more likely to get accustomed to the idea of sustained higher rates. This is particularly true when they consider the massive opportunities in artificial intelligence.
Lower tech share prices can present an opportunity. An excellent example is Microsoft (NASDAQ:MSFT). The tech giant saw a 5% drop between April 15 and April 19. This stock then becomes an attractive investment amid panic over rate cuts and rising Treasury yields.
Microsoft is a strong player in the AI Tech Market, foreseen to grow to $1.8 trillion by 2030. The company has heavily invested in AI, particularly in the business segment. It also maintains a significant presence in the cloud market, set for a predicted growth of 16.4% between 2024 and 2029.
Another key player to consider is Nvidia (NASDAQ:NVDA). Recent information from Taiwan Semiconductor Manufacturing (NYSE:TSM) hints at persistent demand for AI chips. Forecasts suggest AI chip demand could double by 2028.
AMD (NASDAQ:AMD) shares have also seen a significant reversal. Considering the steady demand for AI chips, and the expectation of AI chip revenues comprising 10% of TSMC’s business in 2024, AMD appears to be a strong contender.
Amazon (NASDAQ:AMZN) despite falling prices, continues to be a promising investment. This is due to its e-commerce supremacy and considerable investment in AI data centers. The future seems favorable for Amazon’s continued dominance.
Google (NASDAQ:GOOG,GOOGL) has been working on AI chips for a decade. The tech company is reducing its dependency on major chip manufacturers, potentially resulting in superior in-house chips.
Broadcom (NASDAQ:AVGO) is a crucial part of the AI supply chain. It stands to gain from secular opportunities in the future. With robust fundamentals and a constant dividend, Broadcom represents a steady investment in AI.
Lastly, Micron (NASDAQ:MU) stock offers an excellent chance to secure shares. This is particularly true given its role as a supplier of high bandwidth memory (HBM) to Nvidia. The strong demand for AI chips contributes to the strength of Nvidia, thereby benefiting Micron as a key supplier.
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